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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-10082026-275354
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 227]
NEW DELHI, MONDAY, AUGUST 10, 2026/SHRAVAN 19, 1948
MINISTRY OF PETROLEUM AND NATURAL GAS
RESOLUTION
New Delhi, the 10th August, 2026
F. No M-12043(11)/56/2025-OMC-PNG. The Government of India had notified the Resolution
No. P-12029(11)/2/2018-OMC-PNG dated 08.11.2019 revising guidelines for granting authorisation to market
transportation fuels viz, motor spirit (MS) and high speed diesel (HSD) to new entrants including private sector and also
made certain amendments in the terms and conditions for the already authorised entities and the Public Sector
Undertaking (PSU) oil marketing companies (OMCs).
2. Whereas, it appeared to the Central Government that, it is necessary to review the existing framework for grant of
Market Authorisation for MS/HSD under the Resolution dated 08.11.2019, assess its effectiveness in ensuring energy
security and market efficiency, and to take appropriate measures for aligning the framework with emerging priorities
such as decarbonization, electric mobility, and promotion of alternative fuels. Accordingly, the Central Government
constituted an Expert Committee vide OM No. M-12043(11)/56/2025-OMC-PNG dated 03.07.2025 to look at various
issues related to implementation of the provisions of the said Resolution dated 08.11.2019
3. Whereas, the said Expert Committee submitted its report after having wide ranging consultation with all stakeholders
and considering comments/suggestions received during consultation and in response to the public notice dated
06.08.2025 issued by the Ministry of Petroleum and Natural Gas and keeping in view, the public interest, ease of
doing business, bringing in clarity wherever required, simplifying compliance and monitoring burdens, opening more
retail outlets in remote areas to serve underserved consumers, facilitating ecosystem conducive for marketing of
transportation fuel by authorised entities etc.
4. The Central Government after considering the report of the said committee and recommendations contained therein
has decided to amend the relevant provisions of the said Resolution dated 08.11.2019.
5. Now, therefore, in exercise of the powers conferred under clause 13.3 of the Resolution dated 08.11.2019, the Central
Government, in public interest, hereby makes following amendments in the said Resolution:
i. After Para 3, the following Explanation shall be inserted, namely: -
"Explanation- For the purpose of this Resolution, "MS" and "HSD” shall have the same meaning as defined in the
Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005,
as amended from time to time.";
ii. In Para 6.1.1, for the words "would be required to file an annual statement in this regard with the Central Government
along with audited accounts statement.", the words “shall be required to file a statement every year before 30th of June
to the Central Government along with audited accounts statement duly supported by an affidavit to the effect that the
entity has maintained minimum net worth requirement during the preceding financial year." shall be substituted;
iii. In Para 6.1.3, -
(a) for the words "etc. at their proposed retail outlets (RO) within three years of operationalization of the
said outlet", the words "or any new generation alternate fuel(s) as may be prescribed by the Central
Government from time to time, at every third retail outlet (RO) within three years of its
operationalization” shall be substituted;
(b) after the words, “statutory guidelines as applicable.", the words “The Central Government may review
every three years, the percentage of ROs at which at least one new generation alternate fuel shall be
required to be installed. The authorised entities are required to install such type and number of new
generation alternate fuel on ROs.” shall be inserted;
iv. After Para 6.1.3, the following Para shall be inserted, namely: -
"6.1.3.1 For monitoring compliance of alternate fuel facility at ROs, the following methodology shall apply:
i. For ROs commissioned during period from 08.11.2019 till the date of notification of this amendment: Authorised
entities shall be required to submit a statement indicating number of ROs commissioned, number of ROs in operation
for more than three years, number of commissioned ROs with their longitude-latitude details where alternate fuel facility
has been provided and shortfall if any, within one month from the date of notification of this amendment. In case of any
shortfall, the entity shall ensure compliance within the subsequent six months. In case, the authorised entity fails to
install alternate fuel facilities at the requisite number of ROs within the said six months, the Central Government shall
levy one time penalty of ₹10 lakh (Rupees ten lakh) per shortfall RO on the concerned entity.
ii. Subsequent compliance shall be assessed on the first day of every financial year in respect of preceding financial year
as per Para 6.1.3 above. In case of any shortfall, the Central Government shall levy penalty of ₹10 lakh (Rupees ten
lakh) per shortfall RO on the concerned entity.
In case the number works out to be in decimals, the same would be rounded off to the next higher integer. (e.g.
If the number works out to be 4.2, the same would be rounded off to 5)";
v. For Para 6.2, the following Para shall be substituted, namely: -
"6.2 Application process
The entity seeking authorisation for retail marketing shall make an application to the Central Government in
the prescribed manner along with the requisite non-refundable application fee of ₹ 25 lakh (Rupees twenty five lakh).
The entity needs to set up at least hundred (100) ROs, out of which at least five percent (5%) of the proposed ROs shall
be set up in the notified remote areas within five years of grant of authorisation as per timeline indicated in Para 6.2.1.
The year will be calculated from the date of grant of authorisation.
Eligible applicants meeting all prescribed conditions shall be issued Letter of Intent (LOI) within sixty (60) days from
the date of submission of complete application.
The entity shall be required to furnish following documents within ninety (90) days from the date of issuance
of LOI, which may be extended by the Central Government for further period of ninety (90) days on the request of LOI
holder:
(i) Requisite BGs valid for minimum five years in the format as may be prescribed,
(ii) Valid firm Supply Agreement for the products to be marketed, for a minimum period of five years.
Upon submission of the requisite BGs, firm Supply Agreement, and fulfillment of all requisite requirements,
authorisation shall be granted to the entity in the prescribed format within Sixty (60) days from the date of submission
of all requisite documents. Failure to submit the aforesaid documents within the stipulated period shall render the LOI
liable to be summarily cancelled.
The authorised entities shall mandatorily provide both MS and HSD facility at all ROs including remote area
ROs. This shall be applicable from the date of notification of this amendment.
Explanation-For the purpose of this Resolution, “retail outlet (RO)” means a “Service Station" as defined in Rule 2
(xxiv) of the Petroleum Rules, 2002.
Further, authorised entity shall furnish following documents as evidence of commissioning of RO:
Valid PESO License;
Legal Metrology Calibration Certificate for the dispensing unit;
Product invoice indicating the first supply of MS and HSD to RO;
Geo-tagged photographs of the commissioned RO.”;
vi. For Para 6.2.1, the following Para shall be substituted, namely: -
"6.2.1 Commissioning schedule of remote area retail outlets
The authorised entity shall be required to commission minimum five percent (5%) of the proposed ROs in the notified
remote areas within five years from the date of grant of authorisation/approval of marketing plan (s), as applicable.";
vii. For Para 6.2.2, the following Para shall be substituted, namely: -
"6.2.2 Marketing plan
The entity seeking authorisation for retail marketing shall also submit a marketing plan in its application. The
entity shall be required to specify the year-wise number of ROs it proposes to set up subject to a minimum of hundred
(100) ROs in the application itself. Apart from the above, the marketing plan shall include:
– The source of supply of products to be marketed along with a valid firm supply agreement, for a minimum
period of five years;
Tankage and other infrastructure with their capacity;
Means of transportation of products to depots and to ROs; and
Year wise number of ROs proposed to be set up.
Further, subsequent marketing plan(s) shall be submitted in multiples of 100 ROs only. An entity shall be
eligible to submit a subsequent marketing plan only upon commissioning 100% of its remote area obligation and at least
50% of ROs under its existing approved marketing plan(s). The Central Government shall process the application for
such marketing plan(s) within a period of sixty (60) days from the date of submission of complete application along
with requisite documents.
Any RO commissioned by authorised entity in excess to marketing plan or without approval of marketing plan
except in remote areas will attract a penalty of ₹10 lakh (Rupees ten lakh) per RO and shall be regularised on payment
of the said penalty and subsumed in subsequent marketing plan. Excess ROs commissioned shall also count for remote
area obligation as per applicable provisions. Entity will also be required to submit the additional Bank Guarantee (BG)
of ₹2 Crore (Rupees two crore) for every 100 ROs towards maintaining disciplined behavior or on pro rata for less than
100 ROs commissioned without marketing plan or in excess of marketing plan approved along with applicable Remote
Area BG. This provision shall also regulate excess ROs commissioned after 08.11.2019 and till date of notification of
this amendment.";
viii. In Para 6.2.3.1, for the numbers, letters and words “P-23015/1/2003-Mkt. dated 5th August 2003", the numbers,
letters and words “M-12029(11)/5/2020-OMC-PNG dated 13th October, 2021” shall be substituted;
ix. For Para 6.2.3.2, the following Para shall be substituted, namely: -
"6.2.3.2 The following two options shall be available to the entity in respect of its obligation towards remote area ROs
which it has to exercise at the time of submission of application itself:
Option-1: Upfront payment of ₹ 2 crore (Rupees two crore) per remote area RO within one month of grant of
authorisation to the Central Government in case the entity does not want to set up such ROs itself.
Option-2: Submit a Bank Guarantee (BG) of ₹ 3 crore (Rupees three crore) per remote area RO to the Central
Government within ninety (90) days from the date of issuance of LOI in case the applicant entity wants to set
up such ROs itself. The compliance shall be monitored at the end of five years of grant of
authorisation/approval of marketing plan (s), as applicable.";
x. The following shall be inserted as Para 6.2.3.3 after the Para 6.2.3.2, namely: -
"6.2.3.3 In case, the authorised entity fails to commission requisite remote area ROs within five years from the date of
grant of authorisation/approval of marketing plan(s), as applicable, such entity may choose any of the following two
options:
Option-I: Remote area compliance by way of encashment of BG equivalent to the shortfall in remote area ROs
@ ₹ 3 crore per RO.
Option-II: Commission the shortfall Remote Area ROs along with additional Remote Area ROs which shall
be fifty percent (50%) of the shortfall (rounded off to the next higher integer) within an additional period of
two years starting from the date of exercising the option.
The entity shall submit an additional BG @ ₹3 Crore per Remote Area RO, covering both the additional ROS
and the shortfall ROs, after accounting for the BG @ ₹3 Crore per Remote Area RO commissioned.
In case of failure to commission the shortfall Remote Area ROs and the additional Remote Area ROs within
an additional period of two years, the BG @ ₹3 Crore per shortfall RO shall be encashed at the end of the said period.";
Authorised entities that have completed five years of their authorisation /approval of marketing plan(s), as
applicable, shall be required to exercise either Option I or Option II as detailed in Para 6.2.3.3 within a period of one
month from the date of notification of this amendment.
Authorised entities that have not completed five years of their authorisation / approval of marketing plan (s),
as applicable, shall be required to exercise either Option I or Option II as detailed in Para 6.2.3.3 within a period of one
month from the date of completion of the fifth year of the authorisation/ approval of marketing plan (s), as applicable.
If authorised entity fails to exercise Option I or Option II as per timeline stipulated in Para 6.2.3.3, action shall
be taken for non-compliance of remote area obligation as per Option I of Para 6.2.3.3.
Further, all cases where BGs have already been encashed, or penalty paid for non-compliance of remote area
obligation shall be treated as closed cases and shall not be reopened. However, in cases where BG has already been
encashed due to short fall in commissioning of ROs in remote area at the end of third and fourth year of the grant of
authorisation/approval of marketing plan, as applicable, and the entity subsequently commissions Remote Area ROs
within the stipulated period of five years on cumulative basis, such commissioned ROs may be set off against future
Remote Area obligations under subsequent marketing plan(s).
Entities who have approached any court of law with regard to encashment of BG for non-compliance of remote
area obligation and want to avail option II as detailed in Para 6.2.3.3 shall have to withdraw the case unconditionally.";
xi. The existing Para 6.2.3.3 shall stand renumbered as Para 6.2.3.4;
xii. For Para 6.2.5, the following Para shall be substituted, namely: -
"6.2.5 Bank guarantee (BG) and penalties
The entity shall deposit BGs with the Central Government at the time of grant of authorisation/approval for
marketing plan(s) towards the following:
i. Remote Area Obligation: The remote area compliance by the authorised entity shall be regulated as per Para 6.2.1,
Para 6.2.3.2 and Para 6.2.3.3. If the authorised entity fails to commission any remote area RO as per the timelines
detailed in Para 6.2.1, Para 6.2.3.2 and Para 6.2.3.3 as the case may be, the Central Government shall en-cash BG
equivalent to ₹3 crore (Rupees three crore) per remote area RO corresponding to short fall in commissioning vis-à-vis
obligations. The entity shall also have the option of paying the penalty of ₹3 crore (Rupees three crore) per remote area
RO corresponding to short fall in commissioning vis-à-vis obligations. The BG of ₹3 crore (Rupees three crore) per
remote RO shall be released by Central Government after the authorised entity has discharged its full obligations against
the marketing plan either by setting up of the RO itself within stipulated time or by paying the penalty of ₹3 crore
(Rupees three crore) per remote area shortfall RO.
However, in case the entity has chosen Option 1 in Para 6.2.3.2 above, no BG will be taken from it on account
of commissioning of remote area RO.
ii. Maintaining disciplined behavior: The authorised entity shall deposit BG as detailed below towards maintaining
disciplined behavior in the market in terms of adherence to universal service obligation, making proper representation
about its operations to the public/dealers, providing high customer service to customers, making provision of alternate
fuel at ROs within prescribed timelines and providing timely and regular information about its
infrastructure/sales/operations etc. to the Central Government or its nominated agency:
(a) BG of ₹5 crore (Rupees five crore) at the time of grant of authorisation.
(b) BG of ₹2 crore (Rupees two crore) per 100 ROs against subsequent marketing plan(s).
Penalties:
The Central Government shall levy a penalty of ₹25 lakh (Rupees twenty five lakh) in case of each established
instance of indiscipline and the entity shall pay the penalty within one month of its levy.
In case, the authorised entity fails to install alternate fuel facility at RO as per the timelines prescribed in Para
6.1.3 and 6.1.3.1 above, the Central Government shall levy penalty of ₹10 lakh (Rupees ten lakh) per shortfall RO, and
the entity shall pay the penalty within one month of its levy.
In case, the authorised entity commissions any RO without approved marketing plan or in excess of approved
marketing plan except in remote areas, the Central Government shall levy penalty of ₹10 lakh (Rupees ten lakh) per
shortfall RO, and the entity shall pay the penalty within one month of its levy.
If the authorised entity fails to pay the penalty within one month of its levy, the Central Government shall en-
cash the BG equal to penalty value and the authorised entity shall be required to replenish BG to the full value within a
period of sixty (60) days from the date of encashment of BG.
iii. In case of repeated default in maintaining discipline, both the BGs deposited with the Central Government towards
remote area obligation and maintaining disciplined behavior shall be en-cashed by the Government and any amount
deposited/paid by the authorised entity to the Government shall stand forfeited. Further, the Central Government may
also revoke the marketing authorisation in public interest.
iv. The entity shall be required to renew the BG deposited by it at least one month before its expiry. In the event of
failure to do so, the Government shall be at liberty to en-cash the said BG prior to its expiry.";
xiii. In Para 7.1, for the words "would be required to file an annual statement in this regard with the Central Government
along with audited accounts statement.", the words "shall be required to file a statement every year before 30th of June
to the Central Government along with audited accounts statement duly supported by an affidavit to the effect that the
entity has maintained minimum net worth requirement during the preceding financial year." shall be substituted;
xiv. For Para 7.2, the following Para shall be substituted, namely: -
"7.2 Application process
The entity seeking authorisation for bulk marketing shall make an application to the Central Government in
the prescribed manner along with the requisite non-refundable application fee of ₹25 lakh (Rupees twenty five lakh)
and need to pay upfront at the time of grant of authorisation, an amount of ₹15 crore (Rupees fifteen crore) as non-
refundable authorisation fees.
The entity seeking authorisation for bulk marketing shall include in its application to the Central Government
a marketing plan detailing the following:
The source of supply of products to be marketed along with a valid firm supply agreement, for a minimum
period of five years;
- Tankage and other infrastructure with their capacity;
-Means of transportation of products to depots and to bulk customers;
-Total quantum and type of products to be covered.
Eligible applicants meeting all prescribed conditions shall be issued LOI within sixty (60) days from the date
of submission of complete application.
The entity shall be required to furnish following documents within ninety (90) days from the date of issuance of LOI,
which may be extended by the Central Government for further period of ninety days on the request of LOI holder:
(i) Requisite BGs valid for minimum five years in the format as may be prescribed,
(ii) Valid firm Supply Agreement for the products to be marketed, for a minimum period of five years.
Upon submission of the requisite BGs, firm Supply Agreement, and fulfillment of all requisite requirements,
authorisation shall be granted to the entity in the prescribed format within Sixty (60) days from the date of submission
of all requisite documents. Failure to submit the aforesaid documents within the stipulated period shall render the LOI
liable to be summarily cancelled.";
xv. In Para 8, for the word and numbers "5 and 6", the word and numbers "5, 6 and 7" shall be substituted;
xvi. In Para 9.1. –
(a) in sub-para i., for the words “timelines", the words "timeline" shall be substituted;
(b) for sub-para ii., clause b), the following clause shall be substituted, namely: -
"b) deposit a BG of ₹3 crore (Rupee three crore) per remote RO of shortfall as a security towards setting up the remote
area ROs within two years and six months from the date of notification of the new guidelines. In case the authorised
entity fails to set up remote area ROs within the stipulated time, the entities shall have to choose from following two
options within one month of notification of these guidelines:
Option-I: Remote area compliance by way of encashment of BG equivalent to the shortfall in remote area ROs
@ ₹3 crore per RO.
Option-II: Commission the shortfall Remote Area ROs along with additional Remote Area ROs which shall
be fifty percent (50%) of the shortfall (rounded off to the next higher integer) within an additional period of
two years starting from the date of exercising the option.
The entity shall submit an additional BG @ ₹3 Crore per Remote Area RO, covering both the additional ROS
and the shortfall ROs, after accounting for the BG @ ₹3 Crore per Remote Area RO commissioned.
In case of failure to commission the shortfall Remote Area ROs and the additional Remote Area ROs within
an additional period of two years, the BG @ ₹3 Crore per shortfall RO shall be encashed at the end of the said period.";
(c) for sub-para iii., the following shall be substituted, namely: -
"In addition to conventional fuels, the authorised entities are required to install facilities at their ROs for
marketing at least one new generation alternate fuel in accordance with Paras 6.1.3 and 6.1.3.1 above.";
(d) the following shall be inserted as sub-para vi. after the sub-para v., namely: -
"Further, any subsequent marketing plan and its contents, the conditions for its submission and processing,
regulation of ROs commissioned in excess to marketing plan or without approval of marketing plan, penal provisions,
submission of BG towards maintaining disciplined behavior and remote area obligation etc. shall be governed as per
provisions of Para 6.2.2 above.";
xvii. For Para 9.2, the following Para shall be substituted, namely: -
"9.2 Marketing in case of existing PSU OMCs (IOCL, BPCL and HPCL):
i. PSU OMCs shall be required to set up at least five percent (5%) of the ROs in remote areas. They shall be required
to submit a statement indicating total number of ROs set up by them since 08.11.2019 till the date of notification of this
amendment, number of ROs set up in remote areas during this period and shortfall, if any, in remote areas within a
period of one month from the date of notification of this amendment. In case of any shortfall, the entities shall have to
choose any of the following two options within period of two months from the date of submission of said statement:
Option-I: Remote area compliance by depositing penalty with the Government @ ₹3 crore per remote area
shortfall RO.
Option-II: Commission the shortfall Remote Area ROs along with additional Remote Area ROs which shall
be fifty percent (50%) of the shortfall (rounded off to the next higher integer) within an additional period of
two years starting from the date of exercising the option.
In case of failure to commission the shortfall Remote Area ROs and the additional Remote Area ROs within
an additional period of two years, the penalty @ ₹3 crore per shortfall RO shall be deposited with the Central
Government within a period of one month of the levy of such penalty.
If any PSU OMC fails to exercise Option I or Option II within one month of date of notification of this
amendment, action shall be taken for non-compliance of remote area obligation as per Option I of Para 9.2.i.
ii. The compliance of remote area ROs set up after the date of notification of this amendment shall be regulated at the
end of every five years in accordance with Para 9.2.i above.
iii. PSU OMCs shall be exempted from deposition of BG towards fulfillment of remote area obligations. However,
applicable penalties in case of default in setting up remote area retail outlets shall apply.
iv. In addition to conventional fuels, the PSU OMCs shall be required to install facilities for marketing at least one new
generation alternate fuel at their retail outlet as detailed in Paras 6.1.3 and 6.1.3.1 above.
v. Authorisation fees of ₹15 crore and BG of ₹5 crore payable by new entities for bulk marketing shall not be
applicable.";
xviii. For Para 11, the following Para shall be substituted, namely: -
"11. Surrender of Authorisation
11.1 In case, an entity desires to surrender its authorisation at any point of time, it shall be required to file an application
with the Central Government stating reasons thereof in this regard. Central Government shall ordinarily grant permission
for the surrender after settling all dues/disputes as detailed below:
(i) Within three years from the date of grant of authorisation: The BG for disciplined market behavior
shall be forfeited and the BG deposited towards remote area obligation shall be released after settling all
dues/disputes.
(ii) After three years from the date of grant of authorisation: The BG for disciplined market behavior
along with BG deposited towards remote area obligation shall be forfeited.
11.2 Surrender of authorisation shall be subject to entity indemnifying the Central Government against any claim or
liability arising out of the action taken or purported to have been taken by the entity by virtue of authorisation granted
to it.";
6. The decision herein contained will come into force at once and will remain in force till further orders.
ARUN KUMAR, Director
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